Saucon Valley school debt refinanced

Board says new rate will save taxpayers about $175,000.

The Saucon Valley School Board voted 7-0 to refinance more than $9 million in bonds during a special meeting Monday, saving the district and taxpayers $175,000, officials said.

The interest rate on the $9.2 million the district refinanced dropped from 5.05 percent to 4.11 percent, said Louis Verdelli, managing director of Public Financial Management, the district's financial advisers.

"The opportunity to put the refinancing into place came within the last few weeks," Verdelli told the board. "We're back to the lowest rates we have seen in over 30 years."

Verdelli's group had told school directors earlier in the year they could expect to save money as cascading interest rates made refinancing a reality.

Board members instructed the advisers to jump on a better rate whenever the district could save at least $150,000, School Director Dave DeRemer said.

The $150,000 was factored into the budget for the coming school year, DeRemer said, leaving an extra $25,000 in the district's fund balance.